How this VAT calculator works
VAT (Value Added Tax) — known as GST, or Goods and Services Tax, in some countries — is a percentage added to the price of most goods and services. This calculator handles the two everyday jobs: adding VAT to a price that excludes it (the net price), and removing VAT from a price that already includes it (the gross price).
To add VAT, multiply the net amount by the rate to get the VAT, then add it on: VAT = net × rate ÷ 100 and gross = net + VAT. To remove VAT, work backwards from the gross: net = gross ÷ (1 + rate ÷ 100) and VAT = gross − net. A common mistake is to subtract the rate directly from the gross — removing 20% by taking 20% off £120 gives £96, which is wrong. You must divide by 1.20 instead.
Common VAT and GST rates
| Country | Tax | Standard rate | Add to £100 | Gross |
|---|---|---|---|---|
| United Kingdom | VAT | 20% | £20.00 | £120.00 |
| Ireland | VAT | 23% | £23.00 | £123.00 |
| Germany | VAT | 19% | £19.00 | £119.00 |
| France | VAT | 20% | £20.00 | £120.00 |
| Spain | VAT (IVA) | 21% | £21.00 | £121.00 |
| Australia | GST | 10% | £10.00 | £110.00 |
| New Zealand | GST | 15% | £15.00 | £115.00 |
| Canada | GST (federal) | 5% | £5.00 | £105.00 |
| UAE | VAT | 5% | £5.00 | £105.00 |
Reference note: standard rates shown for illustration. Many countries apply reduced, zero or exempt rates to specific items (food, books, medicine), and Canadian provinces add PST/HST on top of federal GST. Always confirm the current rate for your situation.
Frequently asked questions
- How do I add VAT to a price?
- Multiply the net price by the rate to get the VAT, then add it on. At 20%, VAT on £100 is £20, so the gross is £120. The shortcut is to multiply the net by 1.20.
- How do I remove or back-calculate VAT from a gross price?
- Divide the gross by 1 plus the rate to get the net, then subtract net from gross for the VAT. At 20%, £120 ÷ 1.20 = £100 net, and £120 − £100 = £20 VAT. Do not simply take 20% off the gross.
- What is the VAT rate in the UK and the EU?
- The UK standard rate is 20%. EU standard rates vary — for example 23% in Ireland, 19% in Germany, 20% in France and 21% in Spain — and many goods qualify for reduced or zero rates.
- What's the difference between VAT and sales tax?
- VAT is collected at every stage of the supply chain with businesses reclaiming input VAT, so the final consumer bears the cost. US-style sales tax is charged once at the final point of sale.
- What is GST?
- GST (Goods and Services Tax) is a value-added tax used in Australia (10%), New Zealand (15%), Canada (5% federal) and elsewhere. It calculates exactly like VAT, so this tool works for GST too.
- How do I work out the VAT amount?
- Adding VAT: VAT = net × rate (e.g. £100 × 0.20 = £20). Removing VAT: VAT = gross − (gross ÷ (1 + rate)), e.g. £120 − £100 = £20.